Saturday, 4 April 2015

US economy in shambles

Lately, Iran’s negotiations with super powers at one stage looked like standoff between the US and Iran. While other countries looked ready to walk away, John Kerry, US Secretary of State tried his best to convince others to arrive at a framework that lead to easing sanctions on the country Saudi Arabia considers its worst foe.
It looked that only the US was desperate in normalizing relationship with Iran. Many of the readers may not by aware of the fact that Iran buys the largest value of goods from the US despite all the stringent sanction being in place for more than three and half decades.

A question arises, why the US should be ready to relinquish its ‘global policeman, role? The reply is simple that the largest super power is sinking deeper into economic crisis. Worst of all country is inching towards the worst drought; many states are imposing water rationing as the food security program is at colossal risk.

According to a report more rigs are drilling water wells in the US than oil. Farmers have the strongest lobby in the US and they want the government to protect their interest rather than venturing into any enemy country to keep the arsenal factories running at full capacity.

There is growing realization in the US citizens that Israel has been blackmailing the US government by promoting Iran as the biggest threat for the world. Zionists have inculcated a feeling among the Saudis that Iran is their worst energy as compared to Israel.

The incumbent prime minster made last ditched effort by adding members of the US congress but his mantra failed in attracting attention of masses. Now many of the US citizens are openly asking the question, is the US foreign policy dictated by Israel?

The US has attained the status of the largest oil producing country and got free from the clutches of some of the largest oil producing country i.e. Saudi Arabia. Despite nearly 50 percent decline in WTI prices and extreme glut of oil in the country it has not allowed export, just to keep energy prices low to accelerate economic activities.

Within the super powers, China remains one of the biggest buyers of Iranian crude oil and must be the happiest one if economic sanctions facing Iran over the last three and half decades are removed. Not only buying oil will become easier for it but it would also be able to invest huge in Iranian oil and gas up stream industries.

The US has huge investment in China and at no stage it would like to offend one of the largest economic superpower, despite it replacing the US in Asia and attaining huge naval presence in the Indian Ocean. The US is trying to establish Indian hegemony in the Indian Ocean region but China is moving at a much faster pace.

Growing Chinese interest, through investment in infrastructure projects is also aimed at developing Pakistan as ‘trade and energy corridor’. If Iran can move its oil only through Pakistan, it would not only save billions of dollars spent on freight but also curtail transit time.

Russia, directly in confrontation with the US and other European countries wants to take a revenge for the US for its defeat in Afghanistan and also imposing sanctions on it after the repossession parts of Ukraine.

One may recall that when the US led group wanted to assault Syria, Putin emerged the biggest opponent and went to the extent of threatening attacks on Saudi Arabian oil installations if any such adventure was made.

Britain has already taken over the command from the US in the Middle East and North Africa (MENA), after the defeat of ISIS a phantom created and supported by the US. Britain has a long history of managing colonies following ‘divide and rule policy’. While the US believes in military assaults Britain overpowers countries by creating internal conflicts and weakening the countries, to make them subservient to its might.

If Lawrence of Arabia was a phantom used to demolish Ottoman Empire, Abubakar Baghdadi is also a product of Britain being used for fragmenting and weakening many countries of MENA.

The US could not create justification for attaching Syria and Iraq, but inroad made by ISIS paved way for airstrikes in the name of weeding out ISIS, in either case strategic installations of Syria and Iraq were destroyed. The same strategy is being followed in Yemen to ignite direct confrontation between Iran and Saudi Arabia. 

Germans and French governments want cheap oil to boost their economies and the only solution is to allow Iran to export more oil. They are keen in seeing export of gas from Iran to bring its price down; the way crude oil prices plunged. The two countries are also eyeing huge investment potential in Iran.

Therefore, it be right to say that reaching an agreement to remove sanctions on Iran is the most urgent desire of super powers rather the country that has withstood worst sanctions for more than three and half decades.

Top signs that the U.S. economy is experiencing recession:

The number of new mortgage applications in the US had fallen to the lowest level in nearly 20 years.
Radio Shack has announced that it is going to close more than 1,000 stores just another sign that we are in the midst of a "retail apocalypse".
The ISM Services Employment just experienced its largest decline since the collapse of Lehman Brothers.
Obama care is really starting to hammer the U.S. health care industry.
Trading revenue at the "too big to fail" banks on Wall Street is way down.
One of the "too big to fail" banks, JPMorgan fired thousands of workers.
At one time Moody's downgraded the credit rating of the city of Chicago to just three notches above junk status.
The U.S. economy actually lost millions jobs. The only time the U.S. economy has lost such a number of jobs was in 2009 at the peak of the recession.
Real disposable income in the U.S. experienced the largest year over year decline that was seen since 1974.
Only 35 percent of all Americans say that they are better off financially than they were a year ago.
Global retail sales for machinery giant Caterpillar fallen for 14 months in a row.
The economic data show that virtually all of the largest economies on the planet are slowing down right now.
Meanwhile, things in Ukraine continue to become even tenser, and the Russian government continues to debate how it will respond if the U.S. does end up deciding to hit Russia with economic sanctions.
At one stage the Russian parliament was actually considering the confiscation of the property and assets of U.S. businesses in Russia if the U.S. decides to go ahead with economic sanctions against Russia.
The upper house of Russia’s parliament is mulling measures allowing property and assets of European and US companies to be confiscated in the event of sanctions being adopted against Russia over its threatened military intervention in Ukraine.
We are talking about banks, retail chains, mining operations, etc.
U.S. companies have billions invested in Russia, and all of that could be gone in an instant.
Many US citizens wish that economic war between their country and Russia is averted as it is has hurt substantially.
But no matter how things with this crisis in Ukraine play out, it looks like hard times are ahead for the U.S. economy.
Unfortunately, most Americans never learned the lessons that they should have learned back in 2008.
They just assume that the federal government and the Federal Reserve have fixed our problems and have everything under control, so they are not preparing for the next great crisis.
In the end, tens of millions of Americans will be absolutely devastated when they get absolutely blindsided by what is coming.

No comments:

Post a Comment